Pre-SCN Consultation Serves No Purpose In Large-Scale GST Fraud Cases Involving Complex Transactions: Delhi High Court

The Delhi High Court has observed that pre-SCN Consultative Notice prima facie serves no purpose in large-scale GST fraud cases involving multiple entities and a complex maze of transactions.Pre-SCN consultation was mandatory under Rule 142 (1A) of the Goods and Services Tax Rules, 2017. It prescribed that a proper officer shall, before service of notice to the person chargeable with tax, communicate the details of any tax, interest and penalty as ascertained by the said officer.However, a 2022...

LiveLawBiz: Business Law Daily Round-Up: December 02, 2025

TAX AssessmentOrder Passed Without Awaiting DVD Report Violates S. 50C(2) IncomeTax Act: ITAT Ahmedabad 'WritNot Maintainable In Face Of Disputed Ownership': Delhi High Court InCustoms Gold Confiscation Case S.153C Income Tax Act | Public Info, Unrelated Data Seized FromSearched Person Not Enough To Issue Show Cause Notice: Gujarat HighCourt IncomeTax Act | S. 153C Proceedings Unsustainable Without IncriminatingMaterial Found In Search: Calcutta High Court AdmissionSolutions By TC Global...

No Recommendation To Bring Aviation Fuel Under GST, Clarifies Civil Aviation Minister; Highlights Price Reduction Efforts

The Centre in response to tax treatment of Aviation Turbine Fuel (ATF), has clarified that the GST Council, in which the states are also represented, has not made any recommendation for inclusion of ATF under GST.As for taxation on ATF, the Centre put forth that issue of high Value Added Tax (VAT) levy on ATF ranging from 0% to 29% in some States and Union Territories was addressed, resulting in reduction of VAT by 21 States and Union Territories. The Centre pointed out that under the Regional...

Delhi High Court Restores Trader's GST Registration After 3-Year Delay; Says Medical Issue, Dispute With CA Justified Relief

In a rare instance of relief, the Delhi High Court has directed the GST Department to restore the registration of a trader, cancelled over three years ago, citing the medical issues and dispute with the Chartered Accountant which prevented it from acting earlier.Section 107 of the GST Act prescribes a strict timeline of three months to prefer an appeal from an order of the GST Department, which is extendable by one more month.Thus, a maximum of four months exists for a trader to challenge orders...

Sales Tax Discharged At NPV Under State Incentive Scheme Not Addable To Transaction Value For Excise Duty: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai has held that sales tax deferred under a State incentive scheme and later discharged at Net Present Value (NPV) cannot be treated as “sales tax not paid” for the purpose of including it in the transaction value for levy of Central Excise duty. A Division Bench of C.J. Mathew (Technical Member) and Ajay Sharma (Judicial Member) allowed the appeal filed by the assessee and set aside the demand raised under Section...

Centre Defends GST Hike On Coal, Says It Cuts Power Generation Cost By 17–18 Paise/Unit

The Centre in response to estimated impact of GST reforms on domestic coal producers and import substitution, has clarified that by increasing GST rate on coal from 5% to 18%, the inverted duty structure has been corrected.“GST has rationalized the tax burden across various coal grades, as the previous GST regime led to higher effective tax incidence on low grade coal and low priced coal.”Pursuant to the 56th GST Council Meeting, GST Compensation Cess of Rs. 400 per tonne on coal has been...

GST Bill | Lok Sabha Tables Manipur GST (2nd Amendment) Bill 2025; Track-And-Trace Mechanism Proposed For Select Goods

The Union Government on Wednesday introduced the Manipur Goods and Services Tax (Second Amendment) Bill, 2025 in the Lok Sabha to bring the State GST law in line with amendments made under Sections 121 to 134 of the Finance Act, 2025 and decisions of the 56th GST Council. The Bill proposes significant changes relating to input tax credit, distribution of credit, return filing, appeal pre-deposit, treatment of credit notes and, notably, introduction of a track-and-trace mechanism with...

Delhi High Court Pulls Up GST Authority For Issuing Personal Hearing Notice Saying Assessee's Attendance Not Needed

The Delhi High Court recently criticised the GST Authorities for issuing a “strange” personal hearing notice to an assessee, which said that the assessee need not attend the hearing as the notice is issued only for the purpose of uploading final order.“The personal hearing notice is also quite strange to say the least that no personal hearing was granted before the Commissioner Appeals but a hearing was fixed for uploading of the order. Such a practice is inexplicable and deserves to be...

LiveLawBiz: Business Law Round-Up: November 29 - December 1, 2025

IBCIBC | Terminated Contract Not Corporate Debtor's Asset; Moratorium Won't Revive Extinguished Contractual Rights : Supreme CourtNCLT Mumbai Rejects Indo Global Employees' Claims Filed 18 Months Late, Says Stakeholders Must Be VigilantLiquidator Must Recover Assets Even If Attached By Third Parties, Attachment Cannot Override IBC: NCLT BengaluruBuyers Of Commercial Units Are Not Homebuyers; Cannot Be Recognised As Financial Creditors: NCLT MumbaiNCLT Ahmedabad Orders Liquidation of Girdhari...

Finance Ministry Tables Bill To Hike Excise On Tobacco, Introduces New Cess On Pan Masala

On December 1, 2025, the finance minister Nirmala Sitharaman introduced the Central Excise (Amendment) Bill, 2025 and the Health Security and National Security Cess Bill, 2025, in the Lok Sabha, which will replace the existing Compensation Cess. The Central Excise (Amendment) Bill, 2025, seeks “to give the government the fiscal space to increase the rate of central excise duty on tobacco and tobacco products so as to protect tax incidence”. The Central Excise (Amendment) Bill,...

Delhi High Court Allows Consolidated Appeal Against Single GST Demand Order Covering Multiple Financial Years

The Delhi High Court has allowed the filing of a consolidated appeal in a matter where a 'common and single' order was issued, although the demand pertained to multiple financial years. In an order dated November 18, 2025, the Division Bench comprising Justice Prathiba M. Singh and Justice Shail Jain allowed the Petitioner to take recourse to a single consolidated appeal against consolidated GST demands raised via one order while stating that whether Section 74 was correctly invoked...

IGST ITC Declared In GSTR-9 Can Be Set Off Against Tax Demand If Missed In Monthly GSTR-3B: Calcutta High Court

The Calcutta High Court has stated that IGST (Integrated Goods and Services Tax) ITC (Input Tax Credit) declared in GSTR-9 can be set off against tax demand if missed in the monthly GSTR-3B. Justice Om Narayan Rai bench observed that the appellate authority did not justify why the IGST ITC declared in GSTR-9 could not be set off against the tax demand. In this case, the assessee/petitioner failed to claim Input Tax Credit (ITC) in respect of IGST pertaining to the months of May...